Calian announces its intention to make a normal course issuer bid
Repurchases will not exceed 626,578 common shares, representing 10% of Calian's public float of common shares, as of November 19, 2014. The number of common shares of Calian outstanding as of November 19, 2014 was 7,353,908 and the number of shares in Calian's public float as of November 19, 2014 was 6,265,778. The issuer bid will commence on November 23, 2014 and will not extend beyond November 22, 2015.
All purchases of common shares under the normal course issuer bid will be made on the open market through the facilities of the TSX at market prices in accordance with TSX rules. The common shares so purchased will be cancelled. Other than block purchase exceptions, daily purchases will be limited to 25% of the average daily trading volume ("ADTV"). The ADTV is 4,904 and the daily limit is 1,226 common shares.
The Company also established an automatic plan under which its broker, Desjardins Securities Inc., may purchase common shares of Calian pursuant to the normal course issuer bid (NCIB). The plan defines a prearranged set of critieria in accordance with which its broker may make share purchases. The plan will enable the purchase of Calian's common shares at any time, including when Calian would not ordinarily be active in the market because of internal trading blackout periods, insider trading rules or otherwise. The plan will terminate on the earliest of: the date on which the purchase limits specified in the plan have been attained, the date on which the normal course issuer bid terminates or the date on which the plan is terminated by a party in accordance with its terms.
Calian believes the purchase of its common shares constitute an appropriate use of its general funds in order to increase shareholder value. The current strong cash position of Calian allows Calian to implement the repurchase plan without adversely impacting Calian's operations. In the past 12 months, Calian repurchased 61,700 common shares through a normal course issuer bid at an average price of $19.73.
Calian employs over 2,200 people with offices and projects that span Canada, U.S. and international markets. The company's capabilities include the provision of business and technology services to industry and government in the health, training, engineering, IT services and operations and maintenance domains as well as the design, manufacturing and maintenance of complex systems to the communications and defence sectors.